Nordzucker to Speed Up Cost Cutting, Sells Serbian Business
In addition to measures affecting production, procurement, and sales & marketing, this also includes the phased downsizing of the workforce across the Group by around 300 by 2014/2015.
11 Mar 2010 --- Nordzucker is implementing a comprehensive package of measures to secure profitability and safeguard its future in preparation for more intense competition. The package of measures is designed to cut the Group’s costs by a total of around Euro 67 million through 2014/2015. The Nordzucker Group, with its headquarters in Braunschweig/Germany, is Europe’s second biggest sugar producer, with a market share of 15.4 per cent.
The package of measures primarily entails speeding up and extending the already initiated efficiency-enhancement scheme, as well as targeted cost-cutting measures. In addition, Nordzucker will also reassess all of its trade investments to determine whether they continue to fulfill their expectations.
All Group regions and divisions will play their part in ensuring that the efficiency-enhancement and cost-savings potential which has been identified is achieved according to schedule. In addition to measures affecting production, procurement, and sales & marketing, this also includes the phased downsizing of the workforce across the Group by around 300 by 2014/2015. Discussions are to start immediately with the relevant bodies – especially the regional workers’ representatives – to determine the precise details of this measure and its implementation.
“Within the EU, we have to adapt to further consolidation of the market, that will be exposed to more pressure from third countries. Higher price volatility can also be expected. We are determined to rigorously prepare the Nordzucker Group for the tougher competitive conditions. Having a pronounced sense of cost-awareness is one of the crucial prerequisites for succeeding in this context. Our operative strength in our core business, our market position, the strong connection with our clients, the close relationship with the agricultural sector, and the strength we draw from our ownership structure, form the platform for tackling the challenges ahead,” says Hartwig Fuchs, CEO Nordzucker AG.
Meanwhile Nordzucker AG reported that it has sold its 51 per cent stake in its Serbian investment Sunoko to its other partner in the joint venture. The sale was closed on 10 March 2010. The new owner takes over all the contractual and financial obligations, also with respect to the human resources.
Dr. Niels Pörksen, the director responsible for the Eastern Europe Division explained: “Our analysis of the economic prospects of our Serbian trade investment revealed no change for the better in the foreseeable future. The raw material situation in particular is less than satisfactory. We therefore took the logical step of selling our participation.”
